Requires a bank or financial institution selling or transferring a mortgage during a modification process to provide the borrower with a written list of all documents relating to such application for modification that were provided to the bank or financial institution to which such mortgage was sold or transferred; and relates to the obligations of subsequent mortgage servicer shall assume all duties and obligations related to any previously approved first lien loan modification or other foreclosure prevention alternative.
STATE OF NEW YORK
________________________________________________________________________
5017--A
2019-2020 Regular Sessions
IN SENATE
April 3, 2019
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the banking law, in relation to requiring a bank or
financial institution selling or transferring a mortgage during a
modification process to provide the borrower with a written list of
all documents relating to such application for modification that were
provided to the bank or financial institution to which such mortgage
was sold or transferred; and relating to the obligations of subsequent
mortgage servicer shall assume all duties and obligations related to
any previously approved first lien loan modification or other foreclo-
sure prevention alternative
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 6-n to
2 read as follows:
3 § 6-n. Responsibility of banks for mortgages being processed for
4 modification. 1. If a mortgage that is the subject of an application for
5 a modification of the mortgage terms is sold or transferred during the
6 modification process, the bank or financial institution selling or
7 transferring such mortgage shall provide the borrower with a written
8 list of all documents relating to such application for modification that
9 were provided to the bank or financial institution to which such mort-
10 gage was sold or transferred.
11 2. If a borrower has been approved in writing for a first lien loan
12 modification or other modification to avoid foreclosure, and the servic-
13 ing of such borrower's loan is transferred or sold to another mortgage
14 servicer, the subsequent mortgage servicer shall assume all duties and
15 obligations related to any previously approved first lien loan modifica-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05248-06-9
S. 5017--A 2
1 tion or other foreclosure prevention alternative in accordance with the
2 provisions of this section.
3 § 2. This act shall take effect on the ninetieth day after it shall
4 have become a law and shall apply to all mortgages entered into on or
5 after such date.
